Topping up your self-employed NIC contributions

Source: HM Revenue & Customs | | 13/03/2019

In many circumstances it can be beneficial to make voluntary Class 2 National Insurance Contributions (NICs) to increase your entitlement to benefits, including the State or New State Pension if you are self-employed.

You might want to consider making voluntary NICs because:

you’re close to State Pension age and do not have enough qualifying years to get the full State Pension

you know you will not be able to meet the qualifying years you need to get the full State Pension during your working life

you’re self-employed and do not have to pay Class 2 contributions because you have low profits or live outside the UK, but you want to qualify for some benefits

There is also a specific list of jobs where class 2 NICs are not payable. These are:

examiners, moderators, invigilators and people who set exam questions

people who run businesses involving land or property

ministers of religion who do not receive a salary or stipend

people who make investments for themselves or others - but not as a business and without getting a fee or commission

If you fall within any of these categories it can be beneficial to get a State Pension forecast and examine whether to make voluntary Class 2 NICs to make up missing years.